Tasmanian Premier Jeremy Rockliff has announced plans to review the state’s government-owned businesses, with a particular focus on potentially selling off public transport operator Metro and the Motor Accidents Insurance Board.
In his State of the State address on Tuesday, Rockliff said the government needs to “tighten our belt where we can” and ensure state services are “well-resourced and sustainable”.
“We need to make sure that every state service job is as effective and as productive as possible,” he said.
“The challenge we faced with the spirits raises the important question about what businesses the government should own.”
Rockliff said the government will be undertaking a “comprehensive audit” of all government programs to ensure resources are not being used on things that are “simply no longer the priority”.
“Why should the government own businesses when there is not an overwhelming public benefit in doing so.”
He said the public ownership of Hydro Tasmania is an “excellent example” of where there is overwhelming benefit for the taxpayer.
However he says he will consider whether the government needs ownership of Hydro’s subsidiary Momentum Energy, a mainland-focused energy retailer.
“We will consider whether the Motor Accidents Insurance Board would do a better job freed from the shackles of government ownership,” he said.
“It’s happened in nearly every other state, so it’s worthy of consideration.”
“Likewise, Metro. Is it most efficient as a state-owned company?”
He said he will consider whether the land titles office needs to be owned by the government, alongside changes to TasNetworks.
“We will also consider a 99-year lease of TasNetworks to retain ownership but bring in the expertise and the corporate culture to drive the organisation forward.”
Rockliff said the sale of any businesses will help to “pay down debt” and move the budget towards a surplus.
“We will look to invest the proceeds of any change in ownership in a Sensible Pathway to Surplus Future Fund.”
Northern independents Rebekah Pentland and Miriam Beswick have welcomed the announcement, but say any sale of state-owned assets “must be strategic”.
“This can’t be a fire sale,” Mrs Pentland said.
“The 2011 sale of TOTE Tasmania attracted just $103 million dollars and was widely criticised.”
“We must learn from the mistakes of the past and do our due diligence on any potential sale.”
Greens leader Rosalie Woodruff has slammed the plans as a “radical right-wing agenda”.
“Cuts to the public sector, privatisation of public services and assets, and giving corporations and industry free rein are all straight out of the neoconservative playbook,” she said.
“Jeremy Rockliff was happy to directly reference Ronald Reagan and Donald Trump’s language that people want government out of their lives“.
“That’s not true. Tasmanians want an ambulance when they need one, a safe and secure place to call home, reliable bus services and schools that give every child the chance of a bright future.”
Shadow Treasurer Josh Willie says privatisation “always ends in higher prices for Tasmanians.”
“In a cost-of-living crisis, it’s not the right answer.”
“This is a fire sale because Premier Rockliff can’t manage money. Our state’s finances have never been worse. It’s the wrong approach.”
“Private companies are driven by profit. This will mean higher power bills, higher car registrations and it will be higher public transport costs.”
Business group TCCI has backed Rockliff’s plan, saying their group have “long been calling for public sector reform and efficiency, examining asset sales and creating a sovereign wealth fund”.
“It is absolutely essential that the Tasmanian Government makes sure we have a fit-for-purpose public sector. We have seen the number of public servants increase by thirty per cent over the past eight years, which is completely unsustainable,” TCCI Chair Wayne Davy said.
“This is without doubt the most ambitious, reform-oriented State of the State speech in over twenty years and the TCCI supports what Premier Rockliff outlined today.”
They have called on Labor and the cross bench to “back in” the reforms.
“I know it would be easy for the opposition to play politics with such an ambitious agenda, but we are at a critical point in time for the State and in the interests of Tasmania, business and industry and the community more broadly,” Davy said.
The TCCI calls on the Parliament to work together to deliver these vital reforms and to hold the Government accountable for delivering these reforms.”
Hobart Airport, the Trust Bank of Tasmania and sports betting company TOTE are among previous state government businesses that were privatised by former governments.
An attempt to privatise Aurora Energy’s retail operations in 2013 failed after a lack of interest.
